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We investigate the problem of pricing derivatives under a fractional stochastic volatility model. We obtain an approximate expression of the derivative price where the stochastic volatility can be composed of deterministic functions of time…

证券定价 · 定量金融 2022-10-28 Yuecai Han , Xudong Zheng

Quanto options allow the buyer to exchange the foreign currency payoff into the domestic currency at a fixed exchange rate. We investigate quanto options with multiple underlying assets valued in different foreign currencies each with a…

证券定价 · 定量金融 2024-11-26 Boris Ter-Avanesov , Gunter A. Meissner

The increasing interest in demand-side management (DSM) as part of the energy cost optimization calls for effective methods to determine representative electricity prices for energy optimization and scheduling investigations. We propose a…

应用统计 · 统计学 2026-01-15 Chrysanthi Papadimitriou , Jan C. Schulze , Alexander Mitsos

We derive the price of a spread option based on two assets which follow a bivariate volatility modulated Volterra process dynamics. Such a price dynamics is particularly relevant in energy markets, modelling for example the spot price of…

证券定价 · 定量金融 2014-09-23 Fred Espen Benth , Hanna Zdanowicz

The liberalization of electricity markets and the development of renewable energy sources has led to new challenges for decision makers. These challenges are accompanied by an increasing uncertainty about future electricity price movements.…

应用统计 · 统计学 2018-09-12 Florian Ziel , Rick Steinert

We combine the one-dimensional Monte Carlo simulation and the semi-analytical one-dimensional heat potential method to design an efficient technique for pricing barrier options on assets with correlated stochastic volatility. Our approach…

计算金融 · 定量金融 2022-02-17 Alexander Lipton , Artur Sepp

Electricity is traded on various markets with different time horizons and regulations. Short-term intraday trading becomes increasingly important due to the higher penetration of renewables. In Germany, the intraday electricity price…

机器学习 · 计算机科学 2023-03-13 Eike Cramer , Dirk Witthaut , Alexander Mitsos , Manuel Dahmen

Electricity price signals in modern power systems exhibit complex dependence structures that render forecasting inherently challenging. Our analysis of real-world pricing signals from the California Independent System Operator (CAISO)…

应用统计 · 统计学 2026-05-28 Keyi Wang , Jiaxiang Ji , Mahan Mansouri , Ahmed Aziz Ezzat

Accurate day-ahead electricity price forecasting is essential for residential welfare, yet current methods often fall short in forecast accuracy. We observe that commonly used time series models struggle to utilize the prior correlation…

机器学习 · 计算机科学 2024-08-20 Linian Wang , Jianghong Liu , Huibin Zhang , Leye Wang

We discuss stochastic modeling of volatility persistence and anti-correlations in electricity spot prices, and for this purpose we present two mean-reverting versions of the multifractal random walk (MRW). In the first model the…

统计金融 · 定量金融 2015-06-04 Martin Rypdal , Ola Løvsletten

There are several approaches to modeling and forecasting time series as applied to prices of commodities and financial assets. One of the approaches is to model the price as a non-stationary time series process with heteroscedastic…

统计金融 · 定量金融 2024-07-01 Andrei Renatovich Batyrov

We study an optimal portfolio problem designed for an agent operating in intraday electricity markets. The investor is allowed to trade in a single risky asset modelling the continuously traded power and aims to maximize the expected…

投资组合管理 · 定量金融 2018-07-06 Marco Piccirilli , Tiziano Vargiolu

We consider a 2-dimensional marked Hawkes process with increasing baseline intensity in order to model prices on electricity intraday markets. This model allows to represent different empirical facts such as increasing market activity,…

交易与市场微观结构 · 定量金融 2021-03-17 Thomas Deschatre , Pierre Gruet

In this work, we present the methods necessary to price an important set of derivatives on a quantum device while offering an advantage over existing classical methods. The methods developed here, in conjunction with ~\cite{GumaroS2026},…

量子物理 · 物理学 2026-05-29 Gumaro Rendon , Stepan Smid , Sarvagya Upadhyay

Our paper aims to model and forecast the electricity price by taking a completely new perspective on the data. It will be the first approach which is able to combine the insights of market structure models with extensive and modern…

交易与市场微观结构 · 定量金融 2016-10-18 Florian Ziel , Rick Steinert

We introduce a non-Markovian model for electricity markets where the spot price of electricity is driven by several Gaussian Volterra processes, which can be e.g., fractional Brownian motions (fBms), Riemann-Liouville processes or…

概率论 · 数学 2024-10-22 Yuliya Mishura , Stefania Ottaviano , Tiziano Vargiolu

Spot option prices, forwards and options on forwards relevant for the commodity markets are computed when the underlying process S is modelled as an exponential of a process {\xi} with memory as e.g. a L\'evy semi-stationary process.…

证券定价 · 定量金融 2017-11-02 Fred Espen Benth , Asma Khedher , Michèle Vanmaele

Pricing a multi-asset derivative is an important problem in financial engineering, both theoretically and practically. Although it is suitable to numerically solve partial differential equations to calculate the prices of certain types of…

量子物理 · 物理学 2022-07-05 Kenji Kubo , Koichi Miyamoto , Kosuke Mitarai , Keisuke Fujii

In this paper we introduce an additive two-factor model for electricity futures prices based on Normal Inverse Gaussian L\'evy processes, that fulfills a no-overlapping-arbitrage (NOA) condition. We compute European option prices by Fourier…

数理金融 · 定量金融 2019-10-03 Marco Piccirilli , Maren Diane Schmeck , Tiziano Vargiolu

We consider insurance derivatives depending on an external physical risk process, for example a temperature in a low dimensional climate model. We assume that this process is correlated with a tradable financial asset. We derive optimal…

证券定价 · 定量金融 2008-12-10 Stefan Ankirchner , Peter Imkeller , Alexandre Popier